According to the agreement, the new JV may design and assembly new models of utility turboprop aircraft in the future.

The deal still requires approval from the government and to customary conditions.

The new joint venture plant will be located in Shijiazhuang, Heibei Province, which will engage in final assembly, painting, testing, interior installation, customization, flight-testing and aircraft delivery.

Cessna Caravan has proven to be an aircraft with high reliability since it was introduced, and it is very suitable for the growing global markets, said Scott Ernest, president and CEO of Cessna.

Cessna is very pleased to introduce this aircraft into China, the high quality and versatility of Cessna Caravan will benefit Chinese customers, the president added.

The board members of the JV are made up from both Cessna and CAIGA, where Cessna will designate a general manager and CAIGA the deputy general manager.

Earlier this month, Cessna announced to set up a JV with CAIGA in Zhuhai, Hainan Province, to assemble and sell Cessna's Citation XLS+ business jets in China, China Knowledge reported earlier.